Why The Home Office Is The Perfect Addition To Your Place No Matter The Size
By Tina Martin [Mar 10, 2021]
Are you starting a small business and searching for the perfect location? Why not your home?
Home offices are affordable, convenient, and the way of the future. They're also the most sought-after upgrade in the wake of the COVID-19 pandemic with an average ROI of over 85%. To learn more, read these tips courtesy of Reverie Page.
Budgeting for a home office remodel
On average, homeowners spend $12,119 building a home office. Common expenses include:
● Rewiring for equipment, cable and telephone lines.
● Recessed lighting.
● Windows.
● Exterior entrance.
Some homeowners include an office in a larger home remodel such as:
● Basement remodel.
● Attic remodel.
● Second story addition.
● Garage conversion.
● Accessory dwelling unit addition.
While home additions have bigger price tags, they offer excellent ROI. You don't have to put your project off until spring either. Building an addition in winter is possible with only a few extra costs, which usually come out to less than the price of relocating.
A note on tax deductions
Business owners have another advantage when constructing a home office: tax deductions. Self-employed people who use a home office regularly and exclusively for business can claim direct expenses, including depreciating capital improvements, as well as indirect expenses like utilities and mortgage interest as part of the home office deduction.
This tax benefit is available to both sole proprietors and limited liability companies. However, while there are minimal tax differences between sole proprietorships and LLCs, there are other reasons to form an LLC.
Sole proprietorships don't separate business assets from personal assets. While this simplifies tax filing, it leaves personal assets at risk in the event of bankruptcy or a lawsuit. As an LLC, you enjoy the simplicity of pass-through taxation plus the liability protections a business needs. You can connect with a formation service if you’d like to start an LLC today.
Furnishing a home office: Where to splurge
A home office can be fully-equipped with custom built-ins or as simple as a spare room. No matter the scope of your home office remodel, two things are absolutely necessary: ergonomic furniture, Window well covers, and effective organization.
Ergonomics boost productivity and are good for your health. A height-adjustable office chair with lumbar support and a desk that converts from sitting to standing are the foundation of an ergonomic home office. Adjustable monitors, a footrest, and keyboard platform further improve ergonomics.
Organization includes the basics like file cabinets and mail sorters to modular shelving systems and cabinets that take advantage of vertical space. When choosing home office organization, consider whether you'll keep the space as a dedicated home office or want the option to convert into a flex space in the future.
Should you relocate or renovate?
For some people, relocating is more practical than renovating despite the higher costs. This may be true if your business requires a lot of space or isn't compatible with current zoning restrictions. Remote business owners may also opt to move to the suburbs to take advantage of lower housing costs. However, keep in mind that home offices are in high demand. You may find yourself paying a premium for home office space or paying for additional remodeling to get exactly what you need.
The bottom line: Home offices are a smart investment whether you're renovating your current home or shopping for a new one. If you have a home office remodel on the horizon, think through your plan, factor unexpected costs, and choose a contractor who listens to your needs and helps you understand what to expect. capital improvements.
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